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tv   Fast Money  CNBC  October 17, 2013 5:00pm-6:01pm EDT

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have a lot of cash in portfolios and we're looking to put it to work. >> that is certainly the theme. thank you so much for your thoughts on that as we head into the final trading day of the week. >> you should say that. thank you so much for joining us today. >> thank you for having me. >> that's it for "closing bell". >> "fast money" begins right now. >> this is "fast money," america's post market show. here is tonight's line up. riding the bull. we have got a deal. t-minus 90 days until we're back to scare one. afterhours action from your tablet to your table. find out if traders are stul bullish on the google machine.
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a little tlc. let's get straight to google earnings. the top and the bottom line setting the stock towards an all time high in the afterhours session. john? >> news on the call saying he will no longer join these every quarter. also giving a little bit of interesting data. 40% of youtube traffic coming from mobile up from 6%. they have got more than a billion android devices in the market now, which is quite a few. also talking a lot about enhanced campaigns sayingtizers liked those. that's part of what drove the results this quarter.
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they are getting questions about where things go from here in terms of ecommerce. also on tracking conversions from people starting to click on a mobile device. maybe completing it on a laptop. they might even be able to tell when you walk in the store after you click on an app in the phone. so far it looks like google has been firing on all cylinders. >> who is spending? i added a few things. i added tesla, bank of america and google. who wants to buy a mac book when
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you can buy a chrome cast? >> a long timeshare holder i was having fair amounts of face book envy. the only disappointment was just the cost per click coming down but the number of clicks, obviously, that was great. i woultdn't think of selling it. >> i would tell you a couple of things that john didn't mention. the first being 300,000 cloud customers. to karen's point, cost per click has been a concern.
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but they are more than making up for it in higher and higher volumes. this is a growth business i sthi the stock breaks 1,000 and can continue to keep moving. >> take a look at face book. on the back of the google results. 65 calls in december. these are big upside bets. instead somebody is hedging some of that exposure. to karnt's point, you're right.
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so if i can get 26% up or so on paid clicks, i will take the dip. >> i'm more than happy to stay long google. people have to make room for twitter. >> what do you do? you're saying that you're guessing that google is going to go down when the twitter ipo hits. >> i wasn't happy with the technicals on google so to your point, i think i will probably shave. >> but they did make that same point. i would point out they said that linked in could get hit because people have to make room for face book.
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we did see that effect with facebook. >> apple for one. >> it was a quick turn around. rb r rsh you will get hate mail anyway. >> i will send you hate mail. >> let's move on here. the s&p 500 here all time high in today's session. 13 year high. small and mid cap stocks. mid cap stocks ale well. is this the easiest trade going into the end of the year? >> i made a list of the bull and bear points. when you make a lit of what the
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bull case is that's $2 trillions that frankly need to chase. and the second point? they really haven't begun. so i would just look at that and this about what stocks and sectors they will use to pull ahead. they have largely bin ignored. when we talk about rock fuel i think we can be somewhat selective. >> i am worried that this is now the consensus view. now the mess is put off everyone thinks that q4 is setting up nicely for the reasons you
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brought up. >> i agree with josh on those points and i would add not that larry is the oracle but he doesn't see tapering begin until june of next year. then i'm going to buy all of the housing stocks today. i i added to many of those because i think those will continue to benefit. i bought some of those that are the high dividend payers. people are just going to be chasing these names. >> yeah. i mean to a certain point. i am nervous here.
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>> while they waited to see what the shut down and debt ceiling negotiations would bring. now that that is over, i think we will see a little bit of that demand being used. >> now all of the sudden that will be unleashed. >> i think there will be some of that. >> the only head wind that really gets me nervous is when we go into the holiday season if you still get that head wind and everyone is a little cautious you see them worry about it. it could be a waste of all of this lag time that we are waiting on taper to start. >> you talk about hedge funds
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all the time but they were severely underinvested. that's a huge pool of liquidity that potentially could be coming in here as we head into the end of the year. >> all right. for more on the rally, let's bring in tom lee, thanks for making time for us. are you worried that now everybody is in your camp? that the markets are going to rise? >> consensus views are rarely what play out. i'm actually starting to wonder. what if it's actually you know part of a secular bull market.
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>> that's still a big move from here. >> you have been the most right on the street this year. what the viewers would be most curious to hear your target would be what? 3% away? or talk about 2014 for example. >> yeah i don't want anyone to think that we think once we hit this level, stocks kind of run out of energy. why would we stop at 14.8 times next year's earnings? >> this summer you said something really controversial.
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you were the first to say everyone talks about international head winds and nobody is pricing in the pobltd of international tail winds. start to talk about the benefits of an upswing in europe? >> i think the market is all right sniffing this. i think that's absolutely right. we have taken some of the pain. rather than losing share there. >> got to leave it there. top picks heading into year end is next.
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we have got a deal but will congress be at a standstill again in three months? stay tuned. vo: i didn't get where i am today by luck. i put in the hours and built a strong reputation in the industry. i set goals and worked hard to meet them. i've made my success happen. so when it comes to my investments, i'm supposed to just hand it over to a broker and back away? that's not gonna happen. avo: when you work w ith a schwab financial consultant, you'll get the guidance you need with the control you want. talk to us today.
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>> chipotle about 12 cent bes low estimates at $2.66 a share. company beating on the top line. also give inging slightly better or in line with third quarter same store sales which were up 6.2%. obviously analysts like the news or investors like the news. back to you, melissa. >> mary thanks so much for that. this has been a monster considering its up 86% from its bottom. >> you had me at monster.
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just a heartbreaker. >> i wish i was. take a look at morgan stanley. these are all firms that have upgraded or moved their targets high er higher. >> let's check back in on shares of google moving higher again in the afterhours session. joining us now on the fast line is mark ma hany. mark great to have you with us. >> hey melissa. >> cost per clicks declined but there was a huge surge in page clicks. >> if you can maintain mid 20st or higher then sit a non-issue.
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>> they said they had 75% yooefr growth. that's a real explosive asset for them. they said they had 32% growth in rest of world. it's 46% now of google's revenue comes from the emerging markets. there is a lot of good still to come. >> do you think that the results of this quarter will allow for some multiple revaluation? rb r rsh so this stock trades around 17 times earnings. there is a sustainable 20% growth growing company.
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there is no other company except for two in the s&p 500 who have done that at this level and the other two are amazon and price line. >> mark i have loved this stock for a while now. what is the next thing that really truly moves the needle? >> you know for the next year or two, i would say enhance campaigns. to melissa's point earlier, i thought they caught up to mobile two to three years down the road i think the thing that we will be really talking about is wearable devices. they have voice recognition voice technology. that's the three year thesis on this name.
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we're watching the google impact on some of the other stocks. what are the halos that you would buy into? >> you know we still like amazon. they have got nice tail winds. and i still think we have got another movement up in face book estimates. i think we will see that next week. >> i'm a google guy. i think 1,000 is going to attract like a magnet. i think we can probably say the same thing. on price action alone because it's still not overly expensive, i think it could roll into like
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1100. the nfl now looking to expand thursday night games because of the popularity. they will be going to double headers and talk about supplanting the monopoly that direct tv has for this. both of them have very viable ways to distribute across the country. >> let's go beyond google. >> i have been so wrong on facebook. fis love it. i have been wrong. i still wouldn't buy it but i'm admitting that i don't have a good feel for it.
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i was seeing 65 calls in january. they are buying up $13 higher in just three months out. that's a big bet. for them to buy that many it's somebody hedging an otc and somebody who thinks this stock could go up at the end of the year. >> sfx down? >> i think it's been around only a week. live nation is the way to go in this space. >> pop for american express. >> very nice earnings out of american express today.
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this 9.3% increase was because they had better card sales for the quarter. >> pop here for united rentals. the long term chart against this is excellent this is one of their strongest quarters. i would be a seller. >> drop for ebay. down 4%. >> came out with the earnings and the guidance was pretty bad. not pathetic but the guidance was bad enough to take it back down to 50. it gets a slight rebound here. i give it another day or two to settle. i like it around 50.
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i think revenue is up. and the good news is they are guiding higher. >> and you got a pop here for bonds. automotive news site has identified this as the unanimous bidder who recently paid close to a million bucks for a car used in a james bonld film. discovered in an abandoned storage locker and sold at auction last month. no word on whether he will convert it to run on electric. >> probably help if that one ever catches on fire too, underwater? nothing? crickets? >> you just can't be popular forever can you? some are turning their backs on popular stocks. should you be doing the same?
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>> listen to the market flash. this time on lvs. >> this is the operator at the venician in las vegas. revenue also beat analyst estimates. the company raised its dividend by over 43% to $2 a share.
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>> i'm going to tell you that 90% of ebitda is generated outside of the u.s. this is still a win win for them. you have got to add in singapore. >> focusing on three names left out of today's rally. ibm hitting two year lows. dragging on the dough today. last month two of our traders had a street fight on this one. take a listen. >> ibm, the fact that they're going into the cloud hard now, that was why earnings were flat
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this past quarter. i think they're going to nail it and they will be stronger going forward. >> they don't have the visibility that they used to have. their business seems to be in somewhat of a decline. a 181 number could be a 165 number. i think it's going lower. >> the good news is from 180 it doesn't look as bad but from 200 it looks just terrible. i said flying strong into the cloud and it turns out there was a mountain on the other side of the cloud. >> again -- >> the growth markets are slow. and you still would buy. >> i think a lot was put off this quarter. may come back to him in the next quarter.
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>> it was window dressing though. the area which i thought everyone would be a problem, was. worse than people expected particularly from people at goldman sachs. that was disappointing. they cut expenses and that's what helped the bottom line. to me the additional dividend is nice but doesn't really do anything. this is is a premier name. >> look at this chart. it's been a winner. people demand excellence out of
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winners. an issue with obama care and an issue with medicaid and medicare advantage programs. >> coming up next don't look now. staging a come back this week with a slew of china data on tap tonight. could this be the calm before the storm? americans take care of business. they always have. they always will. that's why you take charge of your future. your retirement. ♪ ♪ ameriprise advisors can help you like they've helped millions of others. listening, planning, working one on one. to help you retire your way... with confidence. that's what ameriprise
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>> welcome back. it has been a rough ride for mining stocks. down about 18% this year but staging a nice turn around this week. we have a slew of china data heading our way. is it finally safe to get back in? josh is the bull dr. jay is the bear. >> i think this is is a no-brainer. here you have a stock that is
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flat on the year. the rest of the market has gone parabollic and these are the names that will be bought and taken higher. and a very massive gap. i think the set up here is really easy. it's a mid single digits earning multiple. >> i think the time to buy it josh, was back at the end of june end of the second quarter. here are three reasons. central banks, i think they have fallen out of love with gold. i don't hear anybody pounding the table saying we have got to take all of this gold and shove it down into a hole somewhere. that's because it's down $600 an
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ounce. there is a lot of costs involved there. that, i think, is a negative and an overhang going into 2014. >> there are very few high quality names that you can buy trading under 10 times earnings. they will buy this thing and take it higher. >> can i tell you, i love the way you started the street fight. >> can i just tell you i appreciate that. >> karen and i were actually having our own little conversation on the side here. i think there is a couple reasons why i would not be a short seller of the name. so guys want to play that. karen as she is writing to me, the whole board is up for reelection.
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>> i want to give her credit. she is riding in front of me. >> all right. all right. >> results at the end of the show. moving from a major miner to the metal itself. managing director. >> you like gold. it doesn't act very well. >> it had a great day today and it -- at these kinds of levels. it is providing insurance against financial inflation and more. >> this is not a major position and now.
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>> you believe the 10 year yield will be down 2%. >> really interest rates even with a taper are going to be on hold at 0% for longer and lower so that makes gold attractive. it's not just the u.s. fed but it's the european central bank bank of england, bank of japan
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and china are in the business of printing more and more money. that's where gold starts to get its appeal. >> it's karen. let me ask you something. you don't see a scenario where you have a very bullish view of the tenure and gold? those are hedges to one another. >> they do offset one another. longer term i mean we want to find a good time to sell that tenure. and that's not right now. right now it looks like the economy is slowing and that ultimately means an easier fed for longer. so there is is a complex tan go i guess, between gold and the ten year yield. >> you're long both and treasuries but you're looking at an exit? would that be december when you think the fed is going to start
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tapering? >> i think the economy will be slow and weak for quite a time. as long as there is deleveraging going through, there will be a lot of pressure on the fed to keep those ten year yields down. as the fiscal authorities contract, as the banking system contracts, the monetary spig oths stay on. >> i'm going to leave it there. thanks for your time. mary tompson is watching the aftershowers session. the company lowered its four year revenue. it now sees it in the lower half of guidance. analyst are looking for guidance or revenue.
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>> i did cover shorts in this name. i think because of the fda warning letter because herb greenburg is out there pounding the table and herb has been right about some of the issues and cut backs and procedures in particular. that people have chosen to go away from the isrg less invasive surgery because of the machine doing the surgery. that's not good for these guys. it's a million and a half. >> tell you how to play it.
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from red hat to insurance companies. you tweet it we trade it. we got your tweets next. there is a pursuit we all share. a better life for your family, a better opportunity for your business, a better legacy to leave the world. we have always believed in this pursuit, striving to bring insight to every investment, and integrity to every plan. we are morgan stanley. and we're ready to work for you.
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geoff: i'm the kind of guy who doesn't like being sold to. the last thing i want is to feel like someone is giving me a sales pitch, especially when it comes to my investments. you want a broker you can trust. a lot of guys at the other firms seemed more focused on selling than their clients. that's why i stopped working at my old brokerage and became a financial consultant with charles schwab. avo: what kind of financial consultant are you looking for? talk to us today.
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>> some slick traders are betting that some slick traders could see some gains. mike? >> it's interesting. we actually saw a lot of call volume. we're only going to talk about three of them right now but it seemed like the entire space was seeing. v ela ro was another one and phillips 66. >> which is a trade you would follow in? >> i think one is the things is that substantial volume in phillips 66. 12 times average daily volume and what was the cause of it. it was one big institutional trade and it looked like a roll.
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possibly selling november 72.5. it could be bullish whether the person is buying or selling. but if they are buying them that's more bullish. why is that? they are expecting it to go above that 72.5 strike price. that would be up 73 bucks. >> which of these given ch. >> i do like valero. we talked the other night that they have the most to gain if the pipeline comes to fruition.
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you want to stay away from -- they have the least to gain. so all the ones that mike mentioned are buyable. the other ones aren't. >> thanks. check out our website. options action.cnbc.com. you tweet it we trade it. we love answering them so let's get to some of them today. what's stocks take? >> after the beat down a lot of folks will say hey it's cheaper. is is i think that's what many people did, hold off on orders. i think you get a chance to buy it cheaper. >> will it continue? karen. : do you like chub? >> i think it's at an all time high here. if you have a view on rates.
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if you think rates will go higher then i like the space. >> josh, listen up. i think the ticker on that is tan. >> here is the deal. you can own tan, which gives you exposure in the whole sector. it's definitely global. a ton of china in there. i think they have a ton of potential. >> stanley black and decker. >> certainly has been punished. >> a few times. i think right about now. this thing is just dipping your toe in the water.
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it's not a compelling buy. >> making a nice move as well. >> pxd a couple of times, like the premium base it is is a stock that went from 105 to 200. as of today, i would still stay in those names. >> in case you missed it we are bringing you the top moments. ♪ ♪ [ bell ringing, applause ] five tech stocks with more than a 10%... change in after-market trading. ♪ ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays...
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that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade. ♪ (train horn)
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vo: wherever our trains go, the economy comes to life. norfolk southern. one line infinite possibilities. >> take a look at shares up on the aftershowers session. highs up about 8% on better than expected earnings. and look at the impact it has been having.
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>> senator, great to have you here. >> i'm glad you're down here in the city of satan. >> i can feel right when i get into the county i feel like spending some money. >> or maybe taking a shower. >> we have a deal. we have removed the tail wind. we didn't get there because of some great compromise. >> the american people are completely fed up with washington. the moment when he commands more jobs and more mo men tim.
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>> a company that doesn't sell that many cars. has got this $24 billion market cap and yet ford and gm are also at local highs in their stock price. it has got to come out of somewhere. >> going to go to our rez tent. >> it's not there yet. this is is a tech company. lit be very obvious that it's not there yet. >> should we? when it comes to stocks? >> here is the thing. you're right.
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>> he has had some really big calls that were non-bond related. i think what he is looking at are situations where all of the good news is already priced in. >> you know, i have to jump in here. i think we have seen jeff make calls on equities before and he has made some exceptional ones. he is the one that called that. that was a call on sentiment and a call when there was over kmub rens in rans in the name. let's be honest. so let's keep our eye on the ball a little bit. >> tesla.
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>> karen? >> i still like bac, bank of america. >> grasso. >> yahoo bye. >> see you back here tomorrow again at 5:00 for more "fast." meantime, "mad money" with jim cramer starts right now. my mission is simple. to make you money. . i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money," welcome to cramerica. other people want to make friends, i'm just trying to make you money. my job is not just to entertain but to coach, teach and explain. so call me at 1-800-743-cnbc. you know what i'm taking a vacation tonight. i'm taking a vacation from washington. oh, i
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